Recycling the RECUR NFT Platform: Shutdown Announcement
Recur, a prominent NFT startup, recently made headlines with the announcement of its gradual wind down and eventual shutdown. The company, which had secured an impressive $50 million in series A funding in 2021, cited market challenges and declining NFT sales as the driving factors behind its decision.
According to the official statement released by Recur, the deprecation of its Web3 functionality was announced on August 18, 2023. The planned shutdown will culminate with the complete disabling of all metadata and migration to IPFS (InterPlanetary File System) by November 22, 2023.
The shutdown process commenced with the disabling of RECUR-powered features, including primary and secondary NFT sales. However, users will still have limited functionality until certain dates. They will be able to withdraw NFTs to on-chain wallets and cash out balances accumulated before August 31, 2023.
Starting from November 9, 2023, Recur will disable NFT deposits and other essential features, such as withdrawals and USDC cash outs. The team at Recur ensured users that any NFT metadata and graphical assets transitioned to IPFS will remain accessible and retrievable. IPFS is a decentralized file sharing protocol that eliminates the reliance on the Recur platform for data retrieval.
Recur’s unraveling underscores the challenges faced by NFT-focused startups in an ever-changing market. The prolonged crypto winter has significantly impacted the industry, resulting in the closure of several startups. Recur’s decision to shut down serves as another poignant example.
In 2021, Recur raised an impressive $50 million in a series A funding round at a valuation of $333 million, making it the largest series A round in the NFT space. Digital, an investment platform focused on the metaverse, led the financing round.
The downturn in NFT sales has affected various platforms, including Recur. The decline in sales volume on Ethereum, the leading blockchain for NFT transactions, has had a direct impact on Recur’s fortunes.
As Recur prepares to say goodbye, the company expressed its gratitude to the RECUR community in a heartfelt message posted on Twitter. The team looks back fondly on the triumphs and challenges that have shaped the company and extends its gratitude to all who have been a part of its journey.
While Recur’s shutdown represents a setback, the NFT industry continues to evolve. Other platforms and startups will undoubtedly emerge, adapting to the changing dynamics and finding innovative ways to thrive in the world of non-fungible tokens.
In conclusion, Recur’s decision to shut down marks another chapter in the volatile and ever-evolving NFT industry. Despite the challenges faced by the startup, the market for unique digital assets continues to inspire innovation and shape the future of digital ownership.